Masters' of the Universe no more ...

Citigroup Inc. and JPMorgan Chase & Co. are putting their top London currency dealers on leave after regulators probing the manipulation of foreign-exchange rates started investigating the traders’ use of an instant-message group, three people with knowledge of the moves said. Rohan Ramchandani, Citigroup’s head of European spot trading, was told yesterday he will be placed on leave, said one of the people who asked not to be identified because he wasn’t authorized to talk publicly. Richard Usher, JPMorgan’s chief dealer in London, went on leave two weeks ago, said another person. Both are taking leave by mutual agreement with their employers and neither has been suspended, the people said.

I am not sure anyone in the industry can really be surprised by this behaviour even if it is obviously illegal (if the allegations are true and all!). Spot FX trading, spread betting etc are no different from gambling. The house always wins.